Keventer Agro Ltd, a Kolkata-based FMCG company, is preparing to launch its Initial Public Offering (IPO), offering investors a chance to participate in one of the most prominent players in the food sector in Eastern and North Eastern India. Known for its diversified range of products, Keventer Agro is positioning itself for further growth and expansion in India’s flourishing FMCG market.
IPO Structure and Offer Details
Keventer Agro’s IPO will consist of a fresh issue and an offer for sale from a key shareholder.
- Total Offer Size: ₹800 crore
- Fresh Issue: ₹350 crore
- Offer for Sale: 10,767,664 equity shares by Mandala Swede SPV, which holds a 6.61% stake in the company.
- Shares Allocation by Category:
- Qualified Institutional Buyers (QIBs): Minimum 75%
- Non-Institutional Investors (NIIs): Maximum 15%
- Retail Individual Investors (RIIs): Maximum 10%
The fresh issue will be used for debt repayment and to meet the company’s capital expenditure requirements. This move is expected to strengthen the company’s financial position and support its growth strategy.
Company Overview: Keventer Agro Ltd
Founded in 1986, Keventer Agro is an established leader in the FMCG sector. The company specializes in a diverse range of products, including packaged foods, dairy, and fresh food products. Its key operations are divided into two major segments:
- Packaged Foods & Beverages: Keventer manufactures and distributes well-known products such as “Frooti,” “Appy Fizz,” and “Smoodh”, along with ready-to-cook and frozen food items under the “Keventer” brand.
- Dairy & Fresh Foods: The company is known for its high-quality dairy products such as pouch milk, ice cream, and milkshakes, marketed under “Metro” and “Keventer” brands.
With over 3,126 distributors across the country, Keventer Agro services approximately 160,000-170,000 retail touchpoints. The company is expanding its reach into northern markets like Rajasthan, Punjab, and Uttar Pradesh.
Key Financials of Keventer Agro Ltd
Here’s a snapshot of Keventer Agro Ltd’s financial performance over the last few years:
Profit & Loss Statement (₹ in Crores)
| Particulars | FY 2019 | FY 2020 | FY 2021 |
| Net Sales | ₹884.41 | ₹945.81 | ₹836.03 |
| Total Expenditure | ₹869.28 | ₹956.57 | ₹914.83 |
| Operating Profit | ₹9.17 | ₹56.71 | -₹20.88 |
| Net Profit | -₹1.15 | ₹34.19 | -₹76.18 |
| Adjusted EPS | -₹0.04 | -₹0.87 | -₹29.05 |
Balance Sheet Overview (₹ in Crores)
| Particulars | FY 2019 | FY 2020 | FY 2021 |
| Share Capital | ₹13.11 | ₹13.11 | ₹13.11 |
| Total Reserves | ₹149.25 | ₹162.33 | ₹88.36 |
| Borrowings | ₹222.20 | ₹301.56 | ₹401.77 |
| Total Liabilities | ₹612.41 | ₹663.23 | ₹716.60 |
| Total Assets | ₹612.41 | ₹663.23 | ₹716.60 |
Market Position and Industry Potential
Keventer Agro is a leading FMCG company in North East and Eastern India, utilizing a multi-channel distribution platform that includes major supermarkets like Big Bazaar, Foodhall, and Spencer’s Retail Ltd. The company also employs technology-driven logistics to ensure efficient and scalable distribution.
India’s FMCG sector is experiencing robust growth, with the market expected to reach ₹11.2 lakh crore by FY 2025. As one of the top players in its segment, Keventer Agro stands to benefit from the sector’s expansion, driven by rising consumer demand for packaged foods and dairy products.
Keventer Agro’s investment in R&D, innovation, and marketing ensures it maintains a strong competitive edge in the FMCG landscape.
Risks and Challenges
Keventer Agro’s IPO presents several risks that potential investors should consider:
- Manufacturing Disruptions: Any slowdown or under-utilization in the manufacturing process could impact business operations and financial performance.
- Product Quality Issues: Compromises in product quality, such as contamination or deterioration, could harm the company’s reputation and sales.
- Brand Recognition: A failure to maintain or grow brand recognition could result in the loss of customer loyalty and market share.
- Regulatory Compliance: The company has faced challenges with securities compliance, with certain promoters’ securities suspended due to non-compliance with the Calcutta Stock Exchange.
Conclusion: Why Invest in Keventer Agro IPO?
The Keventer Agro Ltd IPO provides an opportunity to invest in a well-established FMCG company with a proven track record of growth. With a strong distribution network, robust product portfolio, and significant focus on R&D and marketing, Keventer Agro is poised to benefit from the expanding FMCG market in India.
However, investors should be mindful of the operational risks, quality concerns, and regulatory issues that could affect the company’s performance. Conducting thorough due diligence before investing is essential.
This IPO offers a chance to participate in the growth of a regional FMCG leader with expansion plans across India, making it a compelling investment opportunity for long-term growth.
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